IFSCA Forms Expert Panel To 'Onshore' Indian Fintechs, Startups Domiciled Abroad

The IFSC Authority has set up an expert committee to explore measures that can enhance the startup ecosystem at the Gujarat International Finance Tec-City (GIFT) International Financial Services Centre (IFSC).

The committee is chaired by G Padmanabhan, former Executive Director of the Reserve Bank of India, and comprises experts from leading venture capital funds, startups, fintechs, law firms, tax firms, and other domains.

India's startup ecosystem is the third-largest in the world, with 115 unicorns worth over $1 billion each.

In 2021, Indian startups raised $44 billion, with more than $33 billion going towards deals valued at over $5 million.

However, despite having their primary market, personnel, and founders in India, many Indian startups are domiciled outside the country.

These "flipped" or "externalised" startups make up a significant portion of India's unicorns.

The committee will also identify issues critical to the development of GIFT IFSC as a global fintech hub and recommend measures to encourage new fintechs with a global outlook to set up their commercial presence in GIFT IFSC.

Additionally, the committee will identify challenges and recommend measures for the development of an International Innovation Hub at GIFT IFSC.

The committee is expected to submit its recommendations to IFSCA within three months.

The IFSCA was established in April 2020 under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar in Gujarat.

The IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India.

At present, the GIFT IFSC is the maiden international financial services centre in India. Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA and IRDAI regulated the business in IFSC.